Bank of Canada Rate Decisions 2026
Current overnight rate, 2026 announcement calendar, decision outcomes, and the impact of each BoC move on Canadian mortgage holders. Updated April 11, 2026.
Key Takeaways
- • The Bank of Canada's overnight target is 2.25%, held for the third consecutive meeting on March 18, 2026.
- • The cycle peaked at 5.00% in July 2023; the Bank cut 9 times between June 2024 and October 2025 to reach today's level.
- • There are 8 fixed announcement dates in 2026, all at 9:45 AM ET. Four are accompanied by the Monetary Policy Report (MPR).
- • Big 6 prime rate is 4.45%, down from a peak of 7.20% in late 2023.
- • Source: bankofcanada.ca.
2026 Bank of Canada Announcement Calendar
The Bank of Canada maintains a pre-set schedule of eight fixed announcement dates per year, all at 9:45 AM Eastern Time. Four of the eight dates are accompanied by the quarterly Monetary Policy Report (MPR) and a press conference with the Governor and Senior Deputy Governor.
| Date | Type | Outcome | Overnight Target |
|---|---|---|---|
| January 28, 2026 | Rate decision + MPR | Held | 2.25% |
| March 18, 2026 | Rate decision | Held | 2.25% |
| April 29, 2026 | Rate decision + MPR | Upcoming | — |
| June 10, 2026 | Rate decision | Scheduled | — |
| July 15, 2026 | Rate decision + MPR | Scheduled | — |
| September 2, 2026 | Rate decision | Scheduled | — |
| October 28, 2026 | Rate decision + MPR | Scheduled | — |
| December 9, 2026 | Rate decision | Scheduled | — |
All announcements at 9:45 AM Eastern Time. Source: Bank of Canada.
The Recent Rate Cycle: Peak to 2.25%
The overnight rate peaked at 5.00% in July 2023 after the fastest tightening cycle in a generation — 475 basis points of hikes in just 16 months. The Bank held at 5.00% for nearly a year to let the cumulative tightening work through the economy. Once inflation showed convincing progress back toward the 2% target, the Bank began cutting in June 2024.
| Decision Date | Move | New Overnight Rate | Big 6 Prime |
|---|---|---|---|
| July 2023 | +25 bps (peak) | 5.00% | 7.20% |
| June 5, 2024 | −25 bps (first cut) | 4.75% | 6.95% |
| July 24, 2024 | −25 bps | 4.50% | 6.70% |
| September 4, 2024 | −25 bps | 4.25% | 6.45% |
| October 23, 2024 | −50 bps | 3.75% | 5.95% |
| December 11, 2024 | −50 bps | 3.25% | 5.45% |
| Jan–June 2025 | Multiple cuts (−25 bps each) | Trended lower | Trended lower |
| October 2025 | −25 bps (9th cut) | 2.25% | 4.45% |
| December 2025 | Held | 2.25% | 4.45% |
| January 28, 2026 | Held | 2.25% | 4.45% |
| March 18, 2026 | Held (3rd consecutive) | 2.25% | 4.45% |
Nine cuts totaling 275 basis points between June 2024 and October 2025. Source: Bank of Canada.
What Each Decision Means for Variable-Rate Mortgages
Adjustable-Rate Mortgages (ARMs)
Like Scotiabank's standard variable and most monoline variables. Your payment changes with each prime move.
- Rate cut: payment drops immediately
- Rate hold: no change to your payment
- Rate hike: payment rises immediately
Fixed-Payment VRMs
Big 6 default (except Scotia). Payment stays constant; principal portion adjusts.
- Rate cut: more of payment goes to principal
- Rate hold: no change
- Rate hike: more goes to interest — risk of trigger rate
What a Hold Means in Practice
The Bank of Canada's third consecutive hold at 2.25% signals that the easing cycle is likely complete and the Bank is in a neutral stance. For borrowers, this means:
- Variable-rate borrowers have pricing stability — no surprises on payment or principal allocation.
- Fixed-rate shoppers may see gradual movement in 5-year fixed rates tied to how bond markets reprice the forward rate path. Current 5-year Canada bond yields around 2.80–3.00% anchor fixed mortgage rates near 4.19–4.29% (uninsured broker-channel).
- Renewing borrowers face a stable, predictable environment — a good time to shop and lock in rates with 120-day holds.
Renewing in This Rate Environment
Anyone renewing in 2026 is walking into a dramatically different rate landscape than they originated in. If you signed a 5-year fixed in 2021 at 2.00–2.50%, you're renewing into a 4.00%+ world. If you signed a variable at prime minus in 2021, you rode prime up to 7.20% and back down to 4.45%. The path forward for you depends on your current term structure, balance, and cash flow. See our rate forecast and fixed vs. variable guide for strategy.
Frequently Asked Questions
What is the Bank of Canada's current overnight rate (April 2026)? +
As of April 11, 2026, the Bank of Canada's overnight target rate is 2.25%. The Bank Rate (the rate charged to commercial banks for overnight borrowing) is 2.50%, and the deposit rate paid on settlement balances is 2.20%. The most recent decision was March 18, 2026, when the Bank held at 2.25% — its third consecutive hold.
When is the next Bank of Canada rate announcement? +
The next scheduled fixed announcement date is April 29, 2026, at 9:45 AM ET. This meeting will be accompanied by the quarterly Monetary Policy Report (MPR). There are eight fixed announcement dates per year; the remaining 2026 dates are June 10, July 15 (MPR), September 2, October 28 (MPR), and December 9.
How do Bank of Canada rate decisions affect my variable-rate mortgage? +
Each decision directly moves the prime rate at Canadian lenders. A 25 basis point cut (0.25%) lowers prime by the same amount, which flows into variable-rate mortgages. For adjustable-rate mortgages (ARMs, like Scotiabank's standard variable), your payment changes with every move. For fixed-payment VRMs, your payment stays constant but more (on a cut) or less (on a hike) of it goes to principal.
Why has the Bank of Canada been holding at 2.25%? +
After cutting 9 times between June 2024 and October 2025 to bring rates down from a 5.00% peak, the Bank reached what it considers the neutral range — a rate that neither stimulates nor restrains the economy. With inflation near the 2% target and economic growth stable, the Bank has held at 2.25% for three consecutive meetings (January 28, 2026, and March 18, 2026 at the same level after a January move) while it evaluates the cumulative impact of prior easing.
Do Bank of Canada rate decisions affect fixed mortgage rates? +
Indirectly. Fixed mortgage rates track Government of Canada bond yields, which respond to expectations about the future path of Bank of Canada policy. A rate cut that was anticipated by markets may have little effect on bond yields (and therefore fixed mortgage rates), while a surprise move can shift the whole yield curve. Current 5-year fixed rates sit around 3.94–4.29% at the broker channel.
What was the peak Bank of Canada rate in the recent cycle? +
The overnight target peaked at 5.00% in July 2023, where it was held until June 2024. This was the highest rate in over 20 years and followed the fastest tightening cycle in a generation — rates rose from 0.25% in March 2022 to 5.00% in just 16 months. The Bank has since cut nine times to today's 2.25%.
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